Crude oil price slumps, While fuel pump price increase in The Gambia

By Sailu Bah As the price of fuel has drastically reduced in the world from US$140 per barrel in July last year to about US$60 per barrel today, the effect of this reduction is not being felt in The Gambia where the pump prices of petrol and diesel has been increasing.According to media reports, the price of crude oil, from which petrol and diesel are extracted, is expected to fall further in the coming months. In the Gambia in 2014 alone, the prices of both petrol and diesel (gasoil) have increased twice. The last hike was on 1st September 2014, when petrol increased from D57. 52 to D58.52 per litre and diesel from D54.09 to D55.09 per litre. A report by Global Petrol Prices indicates that the average price of gasoline around the world as at 23-Feb-2015 is 1.05 US Dollar per liter, while that of diesel is 0.95 US Dollar per liter. However, there is substantial difference in these prices among countries. As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices. One notable exception is the U.S. which is an economically advanced country but has low gas prices. The differences in prices across countries are due to the various taxes and subsidies for gasoline. The reason why fuel prices in The Gambia remain unaffected by the slump in world market prices is still unknown However, Mr. Abdou Kolley, the then Minister of Finance and Economic Affairs, while soliciting the approval of the National Assembly for a D300 million dalasi Supplementary Appropriation Bill for 2013, told the deputies that the amount of D189 million dalasi will be taken from the 300 million dalasi to finance, through the gradual increase of the petroleum pump price to ensure the near elimination of the subsidy by the end of 2013. Foroyaa has made numerous efforts to meet the Ministry of Foreign Affairs as well as the Energy Ministry to discuss the issue but still without success.]]>